Financial Potential of an Enterprise as an Object for Strategic Analysis
Journal Title: Економічний часопис Східноєвропейського національного університету імені Лесі Українки - Year 2017, Vol 1, Issue
Abstract
The main purpose of the article is to clarify the category of the «financial potential of an enterprise» on the basis of the generalization of existing research approaches and to formulate the conceptual foundations for its further research as an object of strategic analysis. The above mentioned purpose is detailed in such objectives: 1) to provide critical evaluation of existing research approaches to the concept of financial potential; 2) to highlight the general shortcomings of the approaches presented and clarify the interpretation of financial potential category; 3) to propose a conceptual framework for research of the financial potential of an enterprise as an object of strategic analysis. A critical assessment of the existing definitions of the category led to conclusion that in most cases the interpretation of the financial potential is focused on the internal potential of the enterprise, that reflects the material content of this concept (or resource approach). In the definitions the main focus is on the ultimate goal of utilization of the financial potential (obtaining the maximum financial result, maximum competitive advantages, targeted financial development, etc. (an effect approach)). The structure of the financial potential is often neglected in description of its content; due attention is not paid to the subjective component of the category, etc. In the article, in accordance with the objectives set, the following research methods were used: analysis, synthesis and comparison – for the composition of the research object; the logical generalization and scientific abstraction – for the clarification of the categorical apparatus. The object of the research is the financial potential of an enterprise; the subject is the theoretical foundations for the study of the financial potential as an object of strategic analysis. The applied value of the research results is in the potential possibility for the development of new methodological approaches to the formulation, structuring and strategic analysis of the financial potential of an enterprise. The article substantiates that the financial potential is a complex category identified by the author as a set of financial opportunities for the development of an enterprise, due to the availability of sufficient financial resources and an effective financial management system aimed at achieving the company’s strategic financial position in the external environment. The specified definition of financial potential can be applied both in the past time period (as the availability of resources and management systems), in the current period (as a set of financial opportunities) and in the future (as achievement of the company’s strategic financial position in the external environment). With respect to this the author defines the conceptual foundations for study of the financial potential of an enterprise based on a combination of resource concept, cybernetic and systemic approach, development theory, theory of self-organization and the concept of dynamic abilities. This allowed to deepen the understanding of the concept and direct the attention of researchers to the improvement of methodological provisions for strategic analysis of the financial potential of an enterprise.
Authors and Affiliations
Irina Saukh
Keywords
Related Articles
- EP ID EP408862
- DOI 10.29038/2411-4014-2017-01-132-141
- Views 128
- Downloads 0
Using a Proportional Approach to Taxation in Ukraine: Problems and Possible Ways of their Solution
The article analyzes the proportional (linear) approach to reforming the tax system of Ukraine in modern conditions, specified its shortcomings and suggested ways of introducing progressivity of the tax system in Ukraine...
Corporate Culture: Technology of its Formation
The article investigates corporate culture as a factor which form a facilitate reliable performance in relatively unstable environments. The study reviews the concept and approaches to the corporate culture. The research...
Essential Characteristics of Economic Security of Enterprises and its Definition
We considered the essential characteristic of economic security of an enterprise in that article. Economic security is a key prerequisite for the effective operation of the enterprise. The system of economic security of...
Process Management of Enterprises on the Basis of Corporate Social Responsibility of Business
The process management and corporate social responsibility of business, process of management on the basis of corporate social responsibility are considered. The structural model of the process management mechanism based...
Methodical Toolkit for Analytical Evaluation of Performance
The article examines the methods of evaluating the effectiveness of the tools of providing flexible management. Examples of using traditional methods of analyzing financial status, financial results and the latest tools...